Frasers requires dismissal of Boohoo co-founder Mahmud Kamani

Frasers has called for a vote to dismiss Boohoo co-founder Mahmud Kamani, as the row over the troubled fast fashion firm’s future continues to escalate.

Frasers and Boohoo are already set for a 20 December shareholder showdown, which Frasers hopes will see investors approve the appointment of Mike Ashley as Boohoo’s chief executive and the overhaul of the firm’s leadership. 

Frasers, which owns 27 per cent of Boohoo shares, said on Thursday investors should also be allowed to vote on removing executive chair Kamani and preventing the board from reappointing him – or any other director – before its next annual general meeting.

Ashley’s retail empire has been calling for a change of direction at Boohoo amid poor financial results and dismal share price performance, which it now says are ‘synonymous’ with Kamani’s leadership.

It came as Boohoo moved to reassure shareholders with the appointment of TalkTalk’s group general counsel and company secretary Tim Morris as independent chair.

Boohoo’s losses widened to £147million in the six months to the the end of August, as sales slumped 15 per cent to £620million.

Earlier in November, the group snubbed calls for Ashley’s appointment as chief executive by naming Dan Finley as its new boss.

Boohoo accuses Frasers of ‘self interest’ at the expense of other shareholders and maintains it is on the road to recovery. 

Kamani, who co-founded Boohoo with Carol Kane in 2006, will now become executive vice chair ‘to enable the company to have an independent chair and allow Mahmud to continue his day to day executive role’.

Boohoo said: ‘Tim’s appointment and experience across legal, governance, business and board advisory, will ensure high standards of corporate governance continue to be upheld, including with regards to the business review.

‘Mahmud is an integral part of the leadership team and is currently focussed on the group’s young fashion businesses.’

Kamani has also recommitted to assurances related to his position as a major shareholder, such as refraining from involvement in any competitor’s commercial decision making.

Boohoo shares were up 1 per cent to 29.9p in early trading, having lost 20 per cent of their value since the start of 2024 and more than 90 per cent since its June 2020 peak.

Over the last few years, Boohoo has bought brands including Dorothy Perkins, Wallis and Burton from Sir Philip Green’s collapsed empire. It also picked up Karen Millen for £18.2million in 2019 and failed department store chain Debenhams for £55million in 2021.

Boohoo has already paved the way for a potential break-up of its business, putting in question the future of some of its brands, such as Oasis and Coast, which could be spun off or sold to boost Boohoo’s flagging share price.

Frasers, which is also calling for the appointment of Mike Lennon as director, wrote in an open letter to investors on Thursday: ‘Shareholders have lost money and there is justified disappointment with and distrust of the current leadership, in particular, Mr Kamani.

‘With the appointment of Mr Ashley and Mr Lennon, Boohoo has the potential to become a valuable and profitable business.

‘Boohoo urgently needs a reset, and the upcoming shareholder meeting is your opportunity finally to unlock the company’s incredible potential. Join us in helping boohoo get back on track.’